TERMS

• Term


  A provision which imposes on a contracting party, one or more contractual obligations to act in a specific manner or to refrain from performing a specific act, or which qualifies the contractual obligations
• Term


  It defines the contractual obligations to which parties bind themselves and which they can enforce against each other, or it stipulates the time when or the circumstances which the obligations either become enforceable or are terminated
• Example of a term

  • Mia informs Fadila that the vehicle will be delivered by next Friday
• Ways to incorporate terms in a contract


  • Express
  • Tacit
  • Implied
• Express terms


  Terms that are articulated in the contract, expressed in words or in writing
• Tacit terms


  Terms which have not been expressed in words but are based on the parties' intentions or the intention as imputed by law
• Implied terms


  Terms that are incorporated into the contract by operation of law
• Types of terms


  • Essentialia
  • Naturalia
  • Incidentalia
• Essentialia


  Terms that identify a contract as a specific contract
• Naturalia


  Terms which the law attaches to every contract of a particular class
• Incidentalia


  Additional terms that the parties have agreed to insert
• Incidentalia terms


  • Conditions
  • Time clauses
  • Cancellation clauses
• Condition


  A contractual term that indicates whether a contract will start, continue to operate or terminate, and the consequences of the contract dependent on the occurrence, or non-occurrence of a specific uncertain future event
• Suspensive condition


  Suspends or delays the operation of a contract until the condition is met
• Resolutive condition


  The contract comes into operation when it is concluded, and it is undone by the fulfilment of the condition
• Time clause


  The rights or duties imposed by a contract start or end at a stated time, or when a particular certain future event occurs
• Suspensive time clause


  The contract will not be operational until the certain event has occurred or the time has come
• Resolutive time clause


  The contract will continue to operate until the certain event has occurred or the time has come
• Do I need to perform now or in the future?

  Resolutive = perform now, Suspensive = perform in the future
• Is the event certain to happen or uncertain?

  Certain = time clause, Uncertain = condition
• Warranty

  A contractual term whereby a contracting party accepts absolute responsibility for proper performance relating to the absence of defects in the warrantor's product or service, or to the possibility that the warrantor is able to render the performance, or to the quality or standard of the warrantor's product, service or the quantity of the performance
• Guarantee


  A promise that is provided, mostly when you buy consumer goods, that the product will live up to its expectations or you can ask for a replacement or your money back
• Warranty


  More like an insurance policy, where specific parts of a car can be insured (under warranty) at a set cost. If that part of the car fails, the extended car warranty usually covers the repair or replacement of that part
• Cancellation clause


  One party can cancel the contract immediately if the other party breaches the contract
• Penalty clause


  The parties agree in advance on a penalty (normally in money) for breach of contract
• Forfeiture clause


  A party is entitled to cancel a contract in certain specified circumstances and claim restitution. A forfeiture clause means simply that one or both of the parties will lose their right to restitution in certain circumstances
• Entrenchment clause


  Agreement may only be altered by written amendment and may not be amended by oral agreement